A Company Borrowed Cash from the Bank by Signing a 5-Year

Multiple Choice

A company borrowed cash from the bank by signing a 5-year, 8% installment note. The present value of an annuity factor at 8% for 5 years is 3.9927. Each annual payment equals $75,000. The present value of the note is:

A) $56,352.84.
B) $93,921.41.
C) $375,000.00.
D) $299,452.50.
E) $187,842.81.